Global Market Study on Wood Preservative Chemicals and Coatings Active Ingredients: Asia Pacific and Europe Collectively Estimated to Account for About 3/5th of the Global Market Value Share by 2017 End

Development of eco-friendly active ingredients for wood preservative chemicals such as azoles, IPBC, permethrin etc. is one of the key strategies adopted by wood preservative chemicals and coatings active ingredient manufacturers. The analysts of Persistence Market Research have recently published a new report on this market titled “Wood Preservative Chemicals and Coatings Active Ingredient Market: Global Industry Analysis and Forecast, 2017-2025.” According to this report, APAC and North America were dominant markets in 2016 in terms of consumption. In the coming years, China is likely to emerge as a key production as well as consumption base in the global wood preservative chemicals and coatings active ingredient market. Manufacturers in this market are involved in the research and development of environmentally friendly active ingredients. The analysts have observed that North America and APAC are expected to remain key regions in the global wood preservative chemicals and coatings active ingredient market from the demand side throughout the forecast period. Significant market potential also exists in the growing markets of China, Germany and the U.S.

Growth in the global construction industry is anticipated to have a high impact on the wood preservative chemicals and coatings active ingredient market over the forecast period. Demand for wood preservative chemicals and coatings active ingredients is rising in non-residential buildings such as care centers and hospitals

The growth in the furniture industry is also expected to have a high impact over the forecast period. Investments are expected by leading furniture manufacturers such as Ashley Furniture Industries, Herman Miller Inc., etc. in China. This is projected to boost the demand for active ingredients in wood preservative chemicals and coatings over the forecast period

Growth in global population is estimated to have a medium impact on the wood preservative chemicals and coatings active ingredient market over the forecast period. Increase in population is predicted to boost the demand for residential buildings and in turn propel the growth of the wood preservative chemicals and coatings active ingredient market

Various countries and the regulations associated with the use of chemicals

In the United States, Federal and State regulations establish standards that one must meet before one can legally use certain pesticides. Federal regulations administered by the Environmental Protection Agency (EPA) have registered the sale and use of certain preservatives to ensure that only properly trained applicators have access to them. Wood preservatives affected by these regulations are creosote, pentachlorophenol and inorganic arsenicals. In Europe, all the pesticides must be stored in a tightly closed original container and in a safe place. All the chemicals must be stored in a dry and well-ventilated locked area. They must be kept in sealed containers whenever possible. Various treating plants discharge wastes into approved municipal sewer systems for processing with municipal wastes. Many plants use closed chemical and wastewater recovery systems to contain wastes that can be harmful.

Market Segmentation

By Use Class

UC 1/2 – Indoor

UC 3 – Outdoor

UC 4 – Outdoor with ground contact

UC 5 – Marine

By Active Ingredient Type

Inorganic

Organic

Azoles

Propiconazole

Tebuconazole

Others (Cyproconazole, etc.)

Others

By Region

North America

Latin America

Europe

Asia Pacific (APAC)

Middle East & Africa (MEA)

Report Structure and Research Methodology

The analysts have studied the different segments of the global wood preservative chemicals and coatings active ingredient market and presented a comprehensive market study. Market analysis has been done in terms of Basis Point Share and Y-o-Y growth projections have been covered for each market segment. The report focuses on highlighting the consumption of wood preservative chemicals and coatings active ingredients across the globe. Weighted Average Selling Price (ASP) has been considered to deduce market values. Top-down approach has been used to assess market numbers for each product category, while bottom-up approach has been used to counter validate the market estimations. The analysts have adopted a systematic research approach while inspecting the global wood preservative chemicals and coatings active ingredient market. In-depth secondary research is used to ascertain overall market size, top industry players, top products and industry associations. The analysts have also conducted extensive interviews with industry experts, key market players, distributors and retailers. Data acquired through primary and secondary research is validated using the triangulation method, in which secondary, primary and Future Market Insights’ analysis contribute to the final data. The final data is then scrutinized using advanced proprietary tools to acquire pertinent insights into the global wood preservative chemicals and coatings active ingredient market.

Asia Pacific is expected to account for a high share of global sales of wood preservative chemicals and coatings active ingredients by the end of 2025, registering faster growth among all other regions in the global wood preservative chemicals and coatings active ingredient market. The region is expected to strengthen its market value share by about one percent from 2017 to 2025 end, gaining 70 BPS. The APAC wood preservative chemicals and coatings active ingredient market is anticipated to create total incremental opportunity of US$ 24 Mn between 2017 and 2025. The region, expanding at a CAGR of 3.7% over the forecast period, is anticipated to reach a market value of more than US$ 90 Mn by 2025 end. With a market attractiveness index of 5.0, Asia Pacific is expected to be a relatively attractive market during the forecast period. The market in Asia Pacific represents a high revenue opportunity and high volume and value growth. This trend is anticipated to continue during the forecast period.

Owing to the economic and overall development, various infrastructure projects are being initiated in the APAC region. Deployment of treated wood in these infrastructural projects are also pacing up, subsequently paving the way for a high demand for wood preservative chemicals and coatings active ingredients. With an upsurge in the economic development, mid-to-high end consumers are adopting environmentally friendly products. Solvent borne wood coating products are dominating the Asian market; while on the other hand, water borne coatings and active ingredients possess relatively slow growth.

Countries across the APAC region are experiencing rapid urbanization and infrastructure development. Investments in the construction sector are rising day by day, which is propelling the demand for wood in decking and furniture manufacturing industries, thereby resulting in an increasing consumption of wood preservative chemicals and coatings active ingredients. Wood and wood based products have gained wide indoor and outdoor applications owing to their versatility and abundance. The cost effectiveness, ease and efficiency of construction, and sustainability makes wood a material of choice for many end uses. Wood is also gaining popularity owing to the current trend among end users to impart aesthetic features in their outdoor as well as indoor structural design applications. In order to protect wood and wood products, it must be treated with certain preservatives, which in turn, is expected to create a good demand for wood preservative chemicals and coatings active ingredients in the APAC region. Growing utilization of environmentally friendly active ingredients is one of the major opportunities in the wood preservative chemicals and coatings active ingredient market in APAC.

In terms of value, organic active ingredients are expected to dominate the APAC regional market throughout the forecast period. The organic active ingredient type segment in the APAC wood preservative chemicals and coatings active ingredient market is estimated to account for a market value share of more than 85% in 2017. China is expected to emerge as a highly attractive and dominant market for wood preservative chemicals and coatings active ingredients in Asia Pacific over the forecast period. The market in the country is expected to gain 210 BPS over the forecast period. The China market is inclined toward high growth-high value and is expected to follow the same trend over the forecast period. The India wood preservative chemicals and coatings active ingredient market is expected to gain 10 BPS over the forecast period. The market in the country is inclined towards high growth-low value and it is expected to shift toward high growth-moderate value over the forecast period.